LK Mehta Polymers IPO subscription Day 1: SME issue booked over 5 times; check price band, offer size and key dates

The initial public offering (IPO) of small and medium enterprise (SME) LK Mehta Polymers Ltd opened with a bang, getting fully subscribed within an hour.

The LK Mehta Polymers IPO aims to raise a total of ₹7.38 crore. Bidding will continue till February 17, Monday.

At the end of bidding on Day 1, the IPO was subscribed 5.6 times. The company received bids for 55.5 lakh shares compared to over 9.85 lakh shares on offer.

Buying was led by retail investors, with the portion reserved for them getting oversubscribed by 6.3 times. Retail investors placed bids for 31.1 lakh shares as against 4.93 lakh shares reserved for the category.

Non-institutional investors (NIIs) also followed suit, booking their quota by 5 times. Retail investors placed bids for 24.4 lakh shares compared to 4.93 lakh shares on offer.

For those planning to subscribe to the IPO, here’s a look at all the major details.

LK Mehta Polymers IPO price band and other details

The LK Mehta Polymers IPO is a fixed-price issue consisting entirely of a fresh issuance of 10.4 lakh shares, with no offer-for-sale (OFS) component.

Shares in the IPO are being offered at ₹71 apiece in a lot size of 1,600 units. This is equivalent to a minimum investment amount of around ₹1.14 lakh (₹71 x 1,600) for retail investors who need to bid for at least one lot and ₹2.27 lakh for high net-worth investors who need to bid for a minimum of 2 lots (₹71 x 3,200).

Swastika Investmart Ltd is the book-running lead manager of the issue, while Bigshare Services Pvt. Ltd is the registrar. The company has appointed Swastika Investmart Ltd as the market maker for the IPO.

LK Mehta Polymers IPO important dates

Bidding for the LK Mehta Polymers IPO opened today, February 13, and will close on February 17. The allotment of shares is expected to be finalised on February 18, Tuesday.

Successful bidders, who are allotted shares, can expect them to be credited to their demat accounts by February 20, Thursday. Refunds for the non-allottes would initiated on the same day.

LK Mehta Polymers shares are scheduled to be listed on the BSE SME platform on February 21, Friday.

About LK Mehta Polymers and use of IPO proceeds

Founded in 1995, LK Mehta Polymers is engaged in the trade and manufacturing of plastic rope twine and granules.

The company sells its products under the brand name ‘Super Pack’. It has a reach in over 20 Indian states with more than 500 trusted customers.

The company is also involved in trading and reprocessing basic raw materials like polypropylene and polyethene granules for various customers. It plans to use the IPO proceeds to meet incremental working capital requirements and for general corporate purposes.

LK Mehta Polymers key financials

In the nine months of the current financial year ended December 2024, LK Mehta Polymers reported revenue of ₹11.98 crore. Profit after tax (PAT) for the period was ₹42 lakh.

For the full financial year 2023-24, revenue stood at ₹18.87 crore compared to ₹17.14 crore in 2022-23. Meanwhile, PAT for FY24 was ₹86 lakh compared to a net loss of ₹1 lakh in FY23.